Now is the best time to invest in cryptocurrency
At the moment when I am writing this post, the market capitalization of cryptocurrency has reached US$146 billion. The trading volume today is US$2.6 billion. More and more people are aware of cryptocurrency and jumping on the bandwagon. I can tell you, “Now is the best time to invest in cryptocurrency.”
The biggest news today. Japan gives official endorsement to 11 cryptocurrency exchange.
The Japanese government recognized bitcoin as legal tender this April and now they want to endorse cryptocurrency exchange operators and register them as legitimate businesses.
This means that cryptocurrency will become more popular in Japan. I believe other countries will follow; since there are lots of money to be made. Many governments understand that bitcoin cannot be stopped. Therefore, instead of trying to stop it and it is better to work with it. They foresee bitcoin will bring more activities in the economy and bring more wealth to their citizen. As it has already happened, bitcoin mining has bring a lot of wealth to Chinese bitcoin miners as well as a lot of bitcoin investors.
Other countries like Russia also want to help their citizens to mine bitcoin by providing cheap electricity. It would be a good place for mining bitcoin because they don’t need any cooling fans since Russia is so cold.
Here are the reasons why I think now is the best time to invest in cryptocurrency.
- Cryptocurrencies are still at the early stage, if you get in early you will make money.
- I am actively trading the coin market and I can tell you that the gains are much better than trading shares. Gains of 30% or more in a single day is not uncommon. (But you must know what you are doing, you can make money quickly but you can also lose money quickly. My advice is to take some trading lessons before you start trading. The other alternative is to start very small and slowly increase your investment when you get better at this game.)
- More countries and companies are starting to endorse and use bitcoin and other alt coins.
- More people are getting to know about cryptocurrency and one day it will become main stream.
- Although the price of bitcoin is going up and down daily in a volatile market, but it is still keeping the upward trend. Some people believe bitcoin will worth over US$100,000 to 1 million in a few years. These predictions could be over estimated, but if it increase in value by 5 to 10 times you will sure make some good money.
I had a discussion with one of my friends. He told me he don’t believe in bitcoin because it has no backing like our money. Do you think he is correct?
He is correct if he say it fifty years ago when money is back by gold. At that time you can take you money to the bank and ask them to give you the gold. Since 1971 President Nixon had taken the US dollars off the gold backing. You can read this article – Nixon Ends Convertibility of US Dollars to Gold.
Since then, every country’s money are not back by anything. They are only back by consumer confidence. If no one believe the value of the dollar you are holding in your hand, it is valueless. For example, if you have US$5 and you want to use it in a small town in Africa to buy an apple. The local people have never seen US Dollars before or they cannot exchange it to their own currency. Do you think they will accept your money?
The value of a currency depends on circulation, which is how many people are using it and how many people desire it. At this moment, many people desire bitcoin and many people are using it. The value of bitcoin will only goes up as more and more people believe in it.